S&P upgrades Mittal Steel USA

Standard & Poor's said it raised to BBB from BB its long-term corporate credit rating on Mittal Steel USA Inc., the wholly owned U.S. operating subsidiary of Mittal Steel Co. NV (BBB+/negative). S&P also raised the company's senior unsecured debt ratings to BBB- from BB and removed all ratings from CreditWatch with positive implications, where they were placed on Dec. 23

The outlook is negative, reflecting that of the parent.

The rating action follows the merger between Mittal Steel USA and Ispat Inland Inc., with Mittal Steel USA as the surviving entity. The rating equalization reflects the fact that, in connection with the merger, the surviving entity succeeded its predecessors and assumed their obligations, the agency said.

S&P said the one-notch difference between the ratings on Mittal Steel USA and its parent reflects the significant portion of the group's long-term debt and post-retirement liabilities carried by this subsidiary and the lower cash flows it generates compared with other Mittal subsidiaries.

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